Potential Negative Impact on Consumers and Economy Too Risky to Ignore
WASHINGTON, D.C. – May 15, 2015 – (RealEstateRama) — The Association of Mortgage Professionals – joined other mortgage industry leaders this week in calling for a good faith grace period for compliance with the massive TILA-RESPA Integrated Disclosure requirements that are scheduled to go into effect August 1, 2015.
“The U.S. House Financial Services Subcommittee on Housing and Finance should be commended for holding a hearing this week to shine a light on the impending problems with TRID enforcement scheduled for August 1, 2015, the busiest time of the year in the home buying cycle,” said John Councilman, President of NAMB.
“While we appreciate the CFPB’s efforts to create new integrated forms that are more logical and consumer friendly than those originally proposed,” said Councilman, “NAMBcontinues to believe the strict requirements and exposure to legal liability that lenders are subject to under the new rules will lead to a variety of unintended consequences that will have a negative impact on consumers and the economy.”
According to the NAMB, this additional time would allow the CFPB to provide written answers to industry questions regarding compliance that firms could then rely on to operate within the law under the pending regulations.
“If CFPB Director Cordray maintains that his agency is constrained by the language in Dodd Frank on this and in other areas which are harmful to potential homebuyers, then we believe it is time, long past time, for Congress and the President to come together and make corrections to the flawed Dodd Frank Act.” stated Councilman.
“We understand, however, that it is highly unlikely that Congress and the White House will be able to agree on legislative changes to Dodd Frank between now and August,” added Councilman. “So in the spirit of common sense, we urge CFPB Director Cordray to heed the warnings of our fellow industry leaders and provide a good faith grace period for compliance with TRID from August 1 through the end of 2015”
NAMB’s written testimony on “TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process” Before the Committee on Financial Services Subcommittee on Housing and Finance can be found here:
“TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process”
About NAMB – The Association of Mortgage Professionals:
Since 1973, NAMB-The Association of Mortgage Professionals has been the voice of the mortgage broker and mortgage loan originator industry, representing the interests of mortgage professionals and homebuyers. Its mission is to promote the highest degree of professionalism and ethical standards for members through programs and services such as education, professional certification and government affairs representation. In addition, NAMB members subscribe to a specific code of ethics and best lending practices that foster integrity, professionalism and confidentiality when working with consumers. For more information, visit www.namb.org. Follow NAMB @NAMBpros
Name: John Councilman, CMC, CRMS
Name: John H. P. Hudson, CRMS
Title: Communications Chair